Specialised Outsourcing Limited
("Outsors")
Specialised Outsourcing Limited ("Outsors") - Announcement
A client of Outsors, Umgeni Water, has given the Company notice that it has
withdrawn all of its mandates to Outsors, and has demanded the return of its
records of assets and liabilities.
Outsors has given Umgeni notice that it has unlawfully repudiated the 1997
Contract between them, and Outsors has now accepted Umgeni's repudiation of the
said Contract, and has cancelled the 1997 Agreement and any ad hoc mandate that
may be contended for.
Outsors has demanded full payment for monies owing in terms of the 1997
Contract and any ad hoc mandate in the amount of R40,614,434.39 before it will
release the records relating to the assets and liabilities of Umgeni.
Umgeni have supplied an acceptable bank guarantee for payment of R40,614,434.39
on condition that Outsors institutes proceedings against Umgeni for payment of
its claim within 30 days of rendering the guarantee.
Outsors has not budgeted for, or expected that the Contract with Umgeni would
make a significant contribution to earnings for fiscal 2001. The impact on the
earnings of Outsors, as a consequence of the above, will therefore not be
material.
Outsors is proud to have been associated with Umgeni during the past 41 months,
and is also pleased with what it has achieved for Umgeni in the managing their
treasury during this period.
Randburg
7 May 2001
ends
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